CRITIC OF LUXURY BUDGET

Dominion, Volume 32, Issue 262, 3 August 1939, Page 11

CRITIC OF LUXURY BUDGET

Chamber Of Commerce President’s View

ECONOMY CALLED FOR, NOT RECKLESS SPENDING

“It is a luxury budget at a most inopportune time when the possibility of default in our financial obligations is staring us in the face. The utter folly of such recklessness must be obvious to every thinking person,’ said the president of the Wellington Chamber of Commerce, Captain S. Holm, in a statement yesterday. The total expenditure forecast by the Prime Minister was £62,160,000, of which £16,748,986 was to be raised by loan. Only £2,200,000 of this vast sum was to be spent on defence. When the terms of renewal of the £17,000,000 loan became known, many in New Zealand felt that the British investors had insisted upon unduly onerous conditions. The reason now became clear. It appeared obvious that Mr. Nash ,did not succeed in convincing the financial leaders in Great Britain of the soundness of his methods, or of the intention of the New Zealand Government to abate the orgy of wild extravagance that had brought the country to its present sorry plight. This must inevitably adversely affect the prospects of renewing other loans as they fell due. “A study of the Budget figures makes it clear that the Government is determined to continue its role of ‘The Prodigal Unrepentant’ and it will come as rather a shock to financial circles in Great Britain, from whom Mr. Nash has been imploring financial help, when it is known that, despite our liabilities outside the country, we are determined to spend such vast sums upon ourselves,” ’Captain Holm continued. “The standard of living of the extravagant debtor is much higher than that of the lender to whom he looks for help; it was ever so. No won'der that when asked to renew the £17,000,000 loan the British investors maintained that if we were determined to flout the advice and to surround ourselves with expensive luxury at a time when other nations were denying themselves much and straining every nerve to provide defence for the protection of their people, we should at least not pursue our folly with the help of their money; and so they asked for it back. “If we had any sense of responsibibility to the Empire or appreciation of the crushing, burden that Great Britain is shouldering today in order to ensure our protection from a foreign foe, we would be prepared to economize severely and deny ourselves much that we might be enabled to extend help to Britain in this her period of great trial instead of being an a_dded burden to her.” COMMENT BY MR. NASH Essential Expenditure For Defence (Independent Cable Service.) LONDON, August 1. The New Zealand Minister of Finance, Mr. Nash, released details of the New Zealand Budget in London. Commenting on the Public Works programme, he said that expenditure on railways and roads was essential to meet defence needs adequately. The expenditure to a major degree could be charged to the defence programme. He added that he was impressed byEngland’s interest in New Zealand, and that he appreciated the loyal support of his colleagues. Mr. Nash leaves for America aboard the Queen Mary tomorrow. DOMINION CARRIERS TO CONFER The Dominion executive of the New Zealand Carriers’ Federation will meet in Wellington shortly and consider the effect on their industry of the increased petrol tax. The Wellington association met last night and referred the matter to the Dominion executive as a national one.